Why Car Rental Companies Charge More When Renting From An Airport Location
Posted by Jason Hall on July 17, 2010 | No Comments
There are numerous methods to obtain the lease expensive rate when you are renting a car, but the quickest and easiest way to save money is not rent your car from a car rental company located at the airport. Most people are aware that renting a car at the airport means paying a higher rate then renting at a location outside of the airport, but most people are not aware of the reasons behind the higher rates at airport locations.
There are several reasons why you will pay more for your rental car when you pick it up at the airport. One of the primary reasons that a car rental costs more from an airport location is because there are many fees that the airport charges car rental agencies for their stay in this location. These not only involve the costs of operating the airport but also fees for additional parking areas, airport grounds improvements, as well as airport expansions. Since airport improvements have the potential to increase car rental business in these airports it is considered a necessary business expense but one that is quickly transferred to the clients.
Another reason car rental companies charge higher fees at airports, as opposed to other locations, is simply because they know they can get away with it. Most renters prefer the convenience of picking up their luggage, and walking a few feet to the car rental company location in the airport. The alternative would be to arrange transportation to a rental site off of the airport property, which after a long day of traveling, is usually the last thing renters want to worry about. Car rental companies know renters prefer the convenience of renting at the airport, and they therefore charge a premium for this convenience, which many renters are all to willing to pay.
Car rental companies also charge more at their airport rental locations because they know that demand for rental cars is much higher at these locations. Airports bring in numerous travelers daily, and everyone of these travelers is a potential client for a car rental company. For car rental companies it is a matter of supply and demand. The demand for car rentals is greatest at the airport, so they can charge more then off-site rental companies, and know that they will most likely still rent out all of their available supply each day.
As long as the demand for car rentals at airports remains consistent, car rental companies will continue to charge high rates at their airport locations. Smart renters will shop around, and look for cheaper rates outside of the airport, but for many travelers, the convenience of the airport is worth the extra cost. And when you factor in the increased operating expense that car rental companies have for their airport locations, it is no surprise that renting a car at the airport is typically the most expensive option.
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